Effective Investment to Reduce Setup Cost in a Mixture Inventory Model Involving Controllable Backorder Rate and Variable Lead Time with a Service Level Constraint

Table 3

The optimal solutions for power investment case in Example 4.2.

	Setup cost reduction model					Fixed setup cost model (𝐴=200)
𝜉	𝐴𝑠	𝑄𝑠	𝐿𝑠	𝛽𝑠	EAC^𝑃(⋅)	𝑄𝑠	𝐿𝑠	𝛽𝑠	EAC(⋅)	Savings (%)
0.0	71	76	6	1	2244.56	111	6	1	2511.13	10.62
0.5	71	76	6	0.512	2263.12	111	6	0.512	2529.68	10.54
1.0	71	76	6	0.345	2269.51	111	6	0.345	2536.07	10.51
10	71	76	6	0.050	2280.72	111	6	0.050	2547.28	10.46
20	71	76	6	0.026	2281.64	111	6	0.026	2548.20	10.46
40	71	76	6	0.013	2282.12	111	6	0.013	2548.68	10.46
80	71	76	6	0.007	2282.37	111	6	0.007	2548.93	10.46
100	71	76	6	0.005	2282.42	111	6	0.005	2548.98	10.46
∞	71	76	6	0	2282.62	111	6	0	2549.18	10.46

𝐿_𝑠 in weeks.